Category: Business

The State Bank of Pakistan (SBP) on Thursday received $1.2 billion from the International Monetary Fund (IMF) as the global lender approved the review of the country’s loan programme.

The central bank, in a statement, said that the Fund’s Executive Board had completed the second review of the Extended Fund Facility (EFF) and the first review of the Resilience and Sustainability Facility (RSF) during a meeting in Washington earlier this week.

“SBP has received SDR 914 million (equivalent to about $1.2 billion) under the EFF and RSF in value on December 10, 2025, from the IMF,” the central bank said.

It added that the amount will appear in SBP’s foreign exchange reserves for the week ending on December 12.

The IMF approved the fresh disbursement under its dual-track bailout. The 37-month EFF focuses on macroeconomic stabilisation while the climate-focused RSF addresses long-term climate challenges.

This tranche brings total disbursements to Pakistan under the EFF and RSF to approximately $3.3 billion.

Earlier, the IMF had approved the fresh disbursement.

The executive board, in a statement, highlighted that “Pakistan’s strong programme implementation, despite the recent devastating floods, has maintained stability and improved financing and external conditions”.

It stressed that the country’s policy priorities remain centred on maintaining macroeconomic stability and advancing reforms to strengthen public finances, enhance competition, raise productivity and competitiveness, bolster the social safety net and human capital, reform state-owned enterprises (SOEs) and improve public service provision and energy sector viability.

Gold prices rose in Pakistan on Monday, tracking gains in the international market.

As reported by the All-Pakistan Gems and Jewellers Sarafa Association, the cost of gold per tola rose by Rs. 1,600, bringing the price to Rs. 443,762. The price for 10 grams of gold increased by Rs. 1,372, reaching Rs. 380,454.

This increase came about after a decrease noted on Saturday, when the per tola rate fell by Rs. 2,300, resulting in a new price of Rs. 442,162.

In the global market, the price of gold climbed by $16 per ounce, now at $4,214, which includes a $20 premium. Spot gold was listed at $4,212.70 per ounce as of 0319 GMT, while US gold futures for delivery in December were priced at $4,241.30 per ounce. This rise was influenced by the US dollar approaching levels last seen on December 4, making gold more affordable for international purchasers.

Local silver prices also saw an increase, rising by Rs. 30 to a rate of Rs. 6,102 per tola.

The International Monetary Fund’s (IMF) Executive Board is set to meet today (Monday), withPakistan’s loan reviews expected to be taken up, potentially clearing the way for about $1.2 billion in fresh financing at a crucial moment for the economy.

Pakistan’s case is formally on the agenda for the IMF board meeting scheduled for December 8–14. The recent staff-level agreement with Islamabad under the Resilience and Sustainability Facility (RSF) and the Extended Fund Facility (EFF) will be evaluated by the Fund.

Pakistan might get $1 billion under the EFF and an additional $200 million as the first tranche of the RSF, which promotes climate-resilience activities, if the board approves the reviews. The final decision, however, rests on the board’s deliberations today.

Today’s meeting follows a staff-level agreement that was reached in October after extensive discussions in Karachi, Islamabad, and Washington between September 24 and October 8. Pakistan’s fiscal performance, monetary policy stance, ongoing structural reforms, and advancements on climate-related commitments were the main topics of discussion during the negotiations, which were headed by Iva Petrova, the chief of the IMF mission.

The IMF recognized Pakistan’s “strong progress” in reducing inflation, rebuilding external buffers, and fiscal consolidation in its previous review. Additionally, it gave credits to the State Bank of Pakistan (SBP) for upholding a strict monetary policy, which the Fund claimed has been essential in stabilizing inflation expectations.

The Fund highlighted its ongoing dedication to structural reforms, such as strengthening the viability of the energy sector, boosting competition, improving public service delivery, and strengthening the governance of state-owned enterprises.

The IMF also highlighted Pakistan’s efforts under the RSF to strengthen resilience against natural disasters, enhance the management of water resources, and update its climate information systems reforms that have become more urgent following the devastating floods that severely damaged crops, infrastructure and livelihoods.

Pakistan might get $1 billion under the EFF and an additional $200 million as the first tranche of the RSF, which promotes climate-resilience initiatives, if the board approves the reviews. The final decision, however, rests on the board’s deliberations today.

Ahead of the board meeting, officials confirmed that Pakistan had agreed to one of the IMF’s key conditions: a special audit of supplementary grants issued over the past decade. Islamabad has also accepted another requirement aimed at limiting the federal government’s discretionary power to issue such grants in the future.

Sources said the digital Public Finance Management Assessment was examined during the talks, alongside oversight mechanisms for the digitized PFM master plan.

If the Executive Board approves Pakistan’s reviews today, the disbursement could be made as early as tomorrow. Officials in Islamabad hope the inflow will strengthen external reserves, support the ongoing economic recovery and reinforce investor confidence in the government’s broader reform agenda.

Only one in five Pakistanis believes the country’s economy is strong, and just 16 percent feel confident about investing in the future, media reports said citing a new survey by Ipsos.

According to the Q4 2025 Consumer Confidence Index Survey, national sentiment has dipped back to pre-Pakistan-India war levels with a brief surge in optimism following the conflict that temporarily united a politically divided population.

While that momentum has since faded, reflecting growing public concern in line with recent official statements acknowledging the absence of a viable economic growth model, Ipsos reported that 18 percent of respondents view the economy as strong, with confidence higher among men, youth and affluent groups.

The survey was released shortly after State Bank of Pakistan (SBP) Governor Jameel Ahmad stated that the current growth model cannot support a population of 250 million. National Coordinator of the Special Investment Facilitation Council Lt General Sarfraz Ahmad also noted the lack of a growth plan and called for an export-led strategy.

While perceptions of economic strength have slightly improved since the last quarter, they remain low compared to the post-conflict peak.

The survey also found that 89 percent of Pakistanis feel uncomfortable making household purchases. Men, urban residents and those in Khyber Pakhtunkhwa (KP) showed slightly more comfort, with 18 percent in KP compared to 10 percent elsewhere.

Comfort with household spending has declined since May 2025 but is still better than the same period last year. Inflation remains the top concern with a six percent rise in its perceived impact since the previous quarter. Unemployment follows closely, echoing the findings of a recent labour force survey that recorded joblessness at a 21-year high.

Ipsos Managing Director Abdul Sattar Babar said inflation has re-emerged as a major issue, leading to cautious consumer behavior. Only five percent of respondents feel comfortable making major purchases.

Despite these challenges, the survey highlights a rise in personal financial optimism, especially among youth. This suggests potential for resilience and future growth. Three in ten Pakistanis believe the country is on the right track, with optimism strongest among men, rural residents, upper-income groups and those in Punjab.

One in three respondents expects the economy to improve over the next six months, with youth, women, rural residents and middle-to-upper-income groups showing the most optimism. Sindh emerged as the most pessimistic province.

Confidence in job security has also risen, with 22 percent of respondents feeling secure in their employment. This marks the highest level recorded by Ipsos since tracking began, apart from the 30 percent spike seen during the post-conflict optimism wave.

The Governor of the State Bank of Pakistan, Jameel Ahmad, stated on Wednesday that the external debt-to-GDP ratio of the country has decreased to 26 percent in fiscal year 2025 (FY25), a reduction from 31 percent a few years prior. He credited the positive change to a lower reliance on foreign loans due to a substantial increase in remittances from overseas workers.

Speaking to the media on the sidelines of the SBP’s celebration of “Pakistan Women Entrepreneurship Day 2025,” Ahmad noted that Pakistan’s total external debt “has stayed unchanged for the past three years at the June 2022 level,” contrary to the perception that it had increased. He added that all foreign financing obtained between FY22 and FY25 was used entirely to service old external debt rather than to build foreign exchange reserves.


He noted that between FY15 and FY22, external financing grew by an average of $6.4 billion each year. At the same time, the domestic economy expanded to $407.10 billion in FY25, an increase from $375 billion in FY22.

Ahmad mentioned that the rise in workers’ remittances over the last three years significantly contributed to reducing the country’s dependence on external borrowing. Remittances reached a record $38.3 billion in FY25, up from $30.3 billion in FY24, marking a 27 percent increase compared to the previous year. He also anticipated that remittances would surpass the $40 billion threshold in the ongoing fiscal year of 2025–26.

In response to a question, the SBP chief confirmed that Pakistan’s imports had risen, totaling $5.2 billion in November 2025. However, he dismissed worries that the current account deficit would go beyond the estimated one percent of GDP. He noted that between FY15 and FY22, external financing grew by an average of $6.4 billion each year. At the same time, the domestic economy expanded to $407.10 billion in FY25, an increase from $375 billion in FY22.

Ahmad mentioned that the rise in workers’ remittances over the last three years significantly contributed to reducing the country’s dependence on external borrowing. Remittances reached a record $38.3 billion in FY25, up from $30.3 billion in FY24, marking a 27 percent increase compared to the previous year. He also anticipated that remittances would surpass the $40 billion threshold in the ongoing fiscal year of 2025–26.

In response to a question, the SBP chief confirmed that Pakistan’s imports had risen, totaling $5.2 billion in November 2025. However, he dismissed worries that the current account deficit would go beyond the estimated one percent of GDP. “The current account deficit will stay within the July 2025 forecast of 0–1 percent of GDP,” he stated.

He additionally pointed out that bank lending to small and medium-sized enterprises (SMEs) had grown by Rs150 billion in the past year, reaching Rs700 billion. He remarked that this increase was stronger than expected. Pakistan previously aimed to double SME financing to Rs1.1 trillion over five years, compared to Rs550 billion the previous year.

He additionally pointed out that bank lending to small and medium-sized enterprises (SMEs) had grown by Rs150 billion in the past year, reaching Rs700 billion. He remarked that this increase was stronger than expected. Pakistan previously aimed to double SME financing to Rs1.1 trillion over five years, compared to Rs550 billion the previous year.

The Indian rupee is among Asia’s worst performing currencies this year, slipping to a fresh record low of over INR90 per US dollar on Wednesday.

Traders partly blamed delays in striking a trade deal with the United States.

Early in the year, trade negotiations between Washington DC and New Delhi had raised hopes that foreign capital would flow into the world’s fifth-largest economy. This optimism helped push the rupee to a nearly six-month high of 83.75 against the dollar in May.

However, setbacks in trade talks and weak corporate earnings have led overseas investors to sell more than $16 billion in Indian shares so far this year.

On Wednesday morning, the rupee weakened by as much as 0.35 percent to 90.19, a symbolic new low, according to Bloomberg data.

Dilip Parmar, an analyst at HDFC Securities, told a foreign media outlet that the fall in the rupee is primarily due to an imbalance of demand and supply, with foreign fund outflows and trade deal uncertainty adding pressure.

He added that another factor is the lack of a strong and consistent intervention from India’s central bank. 

Analysts say the Reserve Bank of India has occasionally supported the rupee this year through aggressive dollar sales but appears recently to be allowing more currency flexibility.